Crypto.com Halts Withdrawals for 14 Hours After ‘Unauthorized Activity’ – Gizmodo

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Crypto.com suspended all withdrawals from the platform on Monday and is forcing users to reset two-factor authentication methods, according to tweets from the company. And while Crypto.com is claiming everyone’s money is “safe,” there were reports from users on social media that millions may have been lost to hackers.

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“Earlier today a small number of users experienced unauthorized activity in their accounts. All funds are safe,” Crypto.com said in a tweet on Monday.

“In an abundance of caution, security on all accounts is being enhanced, requiring users to: Sign back into their App & Exchange accounts, [and] Reset their 2FA,” the tweet continued.

“This update will be rolled out to users progressively over the next few hours. Once complete, withdrawals will be re-enabled. We understand this may be an inconvenience, but security comes first. Thank you for your support,” the company continued.

Company CEO Kris Marszalek sent a tweet overnight suggesting that customers are now able to withdraw from their accounts again and that the outage lasted roughly 14 hours. But there are still unanswered questions about whether any funds were actually stolen and whether the company simply reimbursed those who lost funds. Marszalek tweeted that no money was lost, but Crypto.com declined to answer questions Gizmodo emailed overnight.

Some crypto.com users reported having money “stolen” out of their accounts, before the system was restored.

“I messaged yah guys hours ago about my account having 4.28ETH stolen out of nowhere and I’m also wondering how they got passed the 2FA?” crypto influencer Ben Baller tweeted on Monday.

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The 4.28 ethereum that Baller said he lost is equivalent to roughly $13,600 in U.S. currency. Baller went on to claim that about 5,000 ether has gone missing, equivalent to roughly $16 million, but then sent a follow-up that his funds had been restored.

“BIG UPDATE FROM @cryptocom. They have restored my missing funds. THANK YOU FOR BEING A SOLID CRYPTO APP!” Baller tweeted.

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Again, it’s not clear if hackers made off with stolen funds and the users were simply compensated by the company or if no money was actually stolen.

Crypto.com, which has roughly 10 million users, gained significant mainstream attention in the past few months after it bought the naming rights to the Staples Center in Los Angeles and started running ads featuring actor Matt Damon.

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The crypto trading platform also has business agreements with Formula One, the NBA’s Philadelphia 76ers, the NHL’s Montreal Canadiens, among plenty of other ventures. Crypto.com continues to pursue licensing deals around the globe, including a five-year deal in Australia with the Australian Football League just announced on Monday.

Marszalek tweeted the company will issue a post mortem about whatever happened with user accounts, though it’s not clear when that might be released. The big questions on everyone’s mind: Did hackers actually make off with any money? And, if so, did Crypto.com just top up user accounts out of their own pocket in an effort to stop any panic? The company refused to answer that exact question for us today. But hopefully we’ll get answers soon.

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Crypto.com Halts Withdrawals for 14 Hours After ‘Unauthorized Activity’ – Gizmodo

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